American communications equipment maker Andrew Corporation has reached an agreement on the sale of the filter factory in Arad to European Elcoteq company, for approximately 20 million dollars, a release of the company shows. Elcoteq will immediately take over the responsibility for the operations carried out by Andrew Corporation in Romania and will not do away with even a single one of the 250 jobs at the factory in Arad. The assets sold include the stocks of filters in Arad, the contracts and the product manufacturing and testing equipment. Elcoteq will also acquire the employment contracts singed by Andrew Corporation. The deal is part of a broader co-operation agreement of the two companies, which will see Elcoteq become the main supplier of large filters of Andrew Corporation in North America and Europe. Andrew estimates to buy approximately 100 million dollars' worth of products from Elcoteq in the first year after the signing of the contract. Andrew Corporation intends to sell some of its filter manufacturing factories to Elcoteq, as part of a streamlining process that also entails slashing 575 jobs worldwide. Elcoteq revised its third quarter profit and full-year (2006) sales forecast downwards yesterday. Elcoteq estimates sales will go down slightly in the third quarter from the same time last year and the operating income will be lower in turn.
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